Muyuan slaughtered 12.52 million pigs in 2024, with its meat processing division turning profitable for two consecutive months. The company plans to expand capacity, optimize sales channels, and enhance product quality to strengthen profitability.
Muyuan, one of China’s leading pig producers, processed 12.52 million pigs in 2024, reaching a capacity utilization rate of 43%, according to its latest investor update. Notably, the company’s meat processing division achieved profitability for two consecutive months.
Meat Processing: A Turnaround in Profitability
The company attributes the recent profitability of its meat division to improved sales and operational efficiencies. Business conditions began to turn around in Q4 2024, aided by peak demand around the Lunar New Year. This momentum helped the division turn a profit in both December 2024 and January 2025.
For comparison, Muyuan slaughtered 7.97 million pigs in the first three quarters of 2024, operating at 37% of its processing capacity. During that period, the company posted a CNY 650 million (USD 92 million) loss. However, the uptick in Q4 slaughter numbers helped mitigate some of those losses.
Capacity Utilization: Challenges Remain
Despite recent improvements, Muyuan’s total 2024 slaughter volume fell by nearly 6% compared to the 13.26 million pigs processed in 2023. The company has previously stated that a minimum capacity utilization rate of 50% is required for its slaughter operations to break even.
To strengthen its processing capabilities, Muyuan plans to launch a new slaughterhouse in the second half of 2025. The facility will add an annual capacity of 2 million pigs, bringing the company’s total slaughter capacity to 31 million pigs.
Strategic Priorities for Growth
Moving forward, Muyuan aims to:
- Expand Sales Channels – Strengthening market penetration to boost slaughter volumes and improve utilization rates.
- Optimize Product and Customer Mix – Targeting high-value segments to enhance profit margins.
- Enhance Meat Quality – Improving product quality to command higher prices and drive profitability.
As part of its quality-focused strategy, the company is taking specific steps to refine its operations:
- Improve Breeding Efficiency – Selecting superior breeding stock to enhance meat quality and overall productivity.
- Strengthen Quality Control – Implementing comprehensive quality management across breeding, nutrition, veterinary care, and processing. Insights from market research and customer feedback will drive continuous improvements.
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